You have been provided with the following information: Trial Balance of Dahl Partners plc for the

year ended 31/12/2009 DR 127,450 62,698 147,340 22,901 931 606 27,993 CR

Equipment Motor vans Premises Trade receivables Other receivables Prepayments Bank Accruals Trade payables Other payables Accumlated depreciation Motor vans Equipment Sales Purchases Stock at start of year Returns Discounts Administration expenses Distribution costs Selling expenses Ordinary shares at 1 each issued Share premium Debentures Debenture Interest paid Interim Dividend paid - 8 cent per share Retained earnings

1,299 33,227 313 6,615 16,577 431,799 167,837 13,980 3,626 2,645 24,124 3,711 19,388

3,820 4,707

24,800 4,960 23,300 583 1,984 627,797 76,380 627,797 800%

Additional information 1. Stock at the end of the year was valued at 2602 2. Depreciation is calculated on fixed assets as follows: Motor van Equipment 10% 20% on reduced balance on cost 2,602

3. Provide for the following accrued expenses The balance of debenture interest due. The interest rate is 5% Selling expenses 500% 8,931

4. On the last day of the financial year, the company had issued shares as follows: No of Ordinary 1 shares 14,200 Issue premium (cent per share) 19 The cash from the share issue has been received and is to be lodged to the bank account 5. The board of directors have decided the total dividend for the year should be: 13 cent per share The dividend is not payable on the newly issued shares 6.Taxation for the year is estimated at 10094 10,094

Required: Prepare the income statement for the year ended 31/12/2009 Also prepare a balance sheet and statement of changes in equity as at that date

accountingexercises.net

Income statement of Dahl Partners plc for the year ended 31/12/2009 Working Revenue Cost of Sales Gross profit Administration expenses Distribution costs Finance costs Profit before tax Taxation Profit/(loss) for period 49,614 26,645 1,165 77,424 175,354 (10,094) 165,260 ( 431799 - 3626 ) 428,173 175,395 252,778 2,4 2,5 2 3

Workings 1 Finance costs Per Trial Balance Full year interest Due 2 Depreciation Motor Van Per Trial Balance Accum Depreciation per Trial Balance Reduced balance 10% 62,698 6,615 56,083 5,608 583 1,165 583

Equipment Per Trial Balance Depreciation charge 20% 127,450 25,490

Cost of sales Opening Stock Purchases Purchase returns Closing Stock 13,980 167,837 (3,820) (2,602) 175,395

Administration expenses Per Trial balance Depreciation on equipment (Could also be shown as part of cost of sales) 24,124 25,490 49,614

Distribution costs Distribution costs per TB Selling expenses per TB Vans depreciation Discounts allowed Discounts received 3,711 19,388 5,608 2,645 (4,707) 26,645

accountingexercises.net

Balance Sheet of Dahl Partners plc as at 31/12/2009 ASSETS Non-current assets Working Cost Acc. Dep NBV Motor vans 62,698 12,223 50,475 Equipment 127,450 42,067 85,383 Premises 147,340 147,340 337,488 54,290 283,198

Current Assets Stock Trade receivables Other receivables Prepayments Bank

2,602 22,901 931 606 44,891 71,931 355,129

EQUITY & LIABILITIES Equity Ordinary share capital Share premium Retained earnings Non-Current Liabilities Debentures Current Liabilities Trade payables Other payables Accruals 33,227 313 13,216 46,756 355,129 23,300 39,000 7,658 238,415 285,073 3 4

Workings 1 Bank Per TB Cash from share issue

27,993 16,898 44,891

Accruals Per Trial Balance Debenture Int Final dividend Income tax

1,299 583 1,240 (see S of Changes in Equity working) 10,094 13,216

Share capital Per TB New issue Share premium Per TB New issue

24,800 14,200 39,000

4,960 2,698 7,658

accountingexercises.net

Statement of changes in Equity of Dahl Partners plc for the year ended 31/12/2009 Share Capital 24,800 14,200 165,260 (3,224) Retained earnings 76,380 Share premium 4,960 2,698 Total 106,140 16,898 165,260 (3,224)

Balance as at 1/1/2009 Share issue Profit/(Loss) for year Dividends

Balance as at 31/12/2009

39,000

238,415

7,658

285,073

Working Dividends Paid Proposed

5 c /share

1,984 1,240 3,224

accountingexercises.net